EIB Global, FCMB sign €85m deal to fund Nigeria’s cocoa, dairy sectors

THE European Investment Bank Group’s international development arm, EIB Global, and First City Monument Bank (FCMB) have announced an €85 million financing partnership to support Nigerian businesses across agricultural value chains, with at least 70 per cent of the funding earmarked for cocoa and dairy.

The agreement, announced at the International Monetary Fund and World Bank Group Annual Meetings in Bangkok, Thailand, is expected to expand agricultural production, boost local processing capacity, improve farmers’ access to finance and create employment opportunities.

The deal was announced in the presence of EIB Group President, Nadia Calviño, Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, EIB Vice-President, Ambroise Fayolle, European Commissioner for International Partnerships, Jozef Síkela, and FCMB Chief Executive Officer, Yemisi Edun.

The operation marks EIB Global’s first investment covering the dairy sector outside the European Union, with the financing designed to address funding gaps and strengthen Nigeria’s agricultural value chains.

Under the arrangement, businesses in the dairy sector will receive financing to expand production and improve milk supply, while investments in cocoa will support farmers, cooperatives and processors.

Nigeria, one of the world’s major cocoa exporters, is expected to benefit from increased industrial processing capacity, improved product traceability and liquidity support for farmers and cooperatives.

The initiative will also promote compliance with the European Union Regulation on Deforestation (EUDR), which seeks to prevent products linked to deforestation from entering EU markets. The programme is intended to encourage biodiversity conservation and sustainable agricultural practices.

Alongside the credit facility, EIB Global will provide technical assistance to strengthen FCMB’s climate action strategy and improve the capacity of Nigeria’s agricultural sector to manage environmental and social risks.

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Speaking on the partnership, FCMB’s Edun said access to long-term finance could help farmers and agribusinesses move beyond selling raw produce to processing higher-value products, increasing earnings and creating jobs.

She said the combination of funding and technical support would help businesses expand production, improve processing capacity and access new markets, while strengthening rural livelihoods and building a more resilient agricultural sector.

Calviño said investments in agricultural value chains across Africa were critical to food security and economic growth, while also creating opportunities for European businesses.

Síkela said the partnership would help retain more value within Nigeria by expanding local processing and providing businesses with the financing needed to grow.

The investment aligns with Nigeria’s development priorities and the European Union’s Global Gateway initiative, which promotes sustainable infrastructure and economic partnerships.

EIB Group said it had invested €2.3 billion in Nigeria since beginning operations in the country in 1978, supporting sectors including transport, climate adaptation, digitalisation, agribusiness logistics and small and medium-sized enterprises.